Hawaii's $20M bridge construction contract awarded to Hawaiian Dredging Construction Company, Inc

Contract Overview

Contract Amount: $20,057,171 ($20.1M)

Contractor: Hawaiian Dredging Construction Company, Inc

Awarding Agency: Department of Transportation

Start Date: 2018-04-09

End Date: 2019-11-27

Contract Duration: 597 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HI STP SR11(2) NINOLE STREAM BRIDGE AND HI STP SR11(1) HILEA STREAM BRIDGE BRIDGE CONSTRUCTION

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $20.1 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC for work described as: HI STP SR11(2) NINOLE STREAM BRIDGE AND HI STP SR11(1) HILEA STREAM BRIDGE BRIDGE CONSTRUCTION Key points: 1. Value for money appears fair given the scope of bridge construction. 2. Competition dynamics indicate a full and open process, potentially leading to better pricing. 3. Risk indicators are moderate, typical for large-scale construction projects. 4. Performance context shows a completed project within a reasonable timeframe. 5. Sector positioning is within the critical infrastructure and transportation segment.

Value Assessment

Rating: fair

The contract value of approximately $20 million for two bridge constructions in Hawaii is within a reasonable range for such infrastructure projects. Benchmarking against similar bridge construction contracts in the region would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor assumed most of the cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this significant infrastructure project. A competitive bidding process generally leads to more efficient price discovery and can result in lower costs for the government compared to sole-source or limited competition scenarios. The number of bidders, while not excessively high, is sufficient to exert competitive pressure.

Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers by encouraging multiple firms to offer their best pricing to secure the contract.

Public Impact

The primary beneficiaries are the residents and commuters of Hawaii who rely on improved transportation infrastructure. The project delivered essential bridge construction services, enhancing safety and connectivity. The geographic impact is localized to the areas where the HI STP SR11(2) NINOLE STREAM BRIDGE and HI STP SR11(1) HILEA STREAM BRIDGE are located. Workforce implications include employment opportunities for construction workers, engineers, and related trades in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large-scale construction projects.
Delays in project completion can impact public use and incur additional costs.
Ensuring quality and adherence to safety standards throughout the construction process.

Positive Signals

Completion of critical infrastructure projects enhances public safety and economic activity.
Firm-fixed-price contracts transfer cost risk to the contractor.
Full and open competition can lead to cost savings.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a vital part of the broader construction industry. This sector is characterized by large-scale projects requiring significant capital investment, specialized labor, and adherence to stringent engineering and safety standards. The market size for infrastructure construction is substantial, driven by government investment in maintaining and upgrading public works. This specific contract contributes to the ongoing efforts to improve transportation networks, a common area of federal and state spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears limited. However, larger prime contractors often engage small businesses for specialized services or materials, so indirect opportunities may have existed. Further investigation into subcontracting plans would be needed for a comprehensive analysis.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Highway Administration (FHWA) through its program offices and potentially through resident engineers or construction inspectors on-site. Accountability measures are embedded in the contract terms, including performance specifications and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting of federal spending. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Highway Administration Bridge Program
State Infrastructure Improvement Projects
Transportation Construction Grants

Risk Flags

Potential for cost overruns
Schedule delays
Unforeseen site conditions
Material price volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.1 million to HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC. HI STP SR11(2) NINOLE STREAM BRIDGE AND HI STP SR11(1) HILEA STREAM BRIDGE BRIDGE CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is HAWAIIAN DREDGING CONSTRUCTION COMPANY, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2018-04-09. End: 2019-11-27.

What is the track record of Hawaiian Dredging Construction Company, Inc. with federal contracts?

Hawaiian Dredging Construction Company, Inc. has a history of performing work for the federal government, particularly within the Department of Transportation and the Army Corps of Engineers. Their experience often involves large-scale civil engineering and construction projects, including marine construction and infrastructure development. Reviewing their past performance on similar federal contracts, including any reported issues or successes, would provide further insight into their reliability and capability. Data from contract databases can reveal their award history, contract values, and any performance evaluations or disputes that may have arisen on previous federal engagements.

How does the awarded price compare to similar bridge construction projects in Hawaii or the continental US?

A precise comparison of the $20 million award for these two bridges to similar projects is challenging without detailed project specifications (e.g., square footage, material types, complexity of design, specific site conditions). However, general benchmarks for bridge construction can be established. For instance, the cost per linear foot or per square foot can be a useful metric. Projects in Hawaii may inherently carry higher costs due to logistics, material transport, and local labor rates compared to some continental US locations. The firm-fixed-price nature suggests the contractor absorbed risks, which could influence the initial bid price. A detailed analysis would require identifying comparable projects with similar scope, scale, and location, adjusting for inflation and regional economic factors.

What are the primary risks associated with this type of bridge construction contract?

The primary risks for a bridge construction contract of this magnitude include unforeseen subsurface conditions (geotechnical issues), weather-related delays impacting the construction schedule, material cost fluctuations (especially for steel and concrete), labor shortages or disputes, and potential design changes or scope creep. Given this is a firm-fixed-price contract, the contractor bears the brunt of cost overruns due to these factors. However, the government faces risks related to project delays, potential contractor default, and ensuring the final structure meets all safety and performance specifications. Effective project management, contingency planning, and robust oversight are crucial to mitigate these risks.

How effective was the competition in driving down costs for this specific contract?

The contract was awarded under full and open competition with three bidders. While three bidders generally indicate a competitive environment, the effectiveness in driving down costs can only be fully assessed by comparing the winning bid to the bids of the other two competitors and to an independent government cost estimate, if one was developed. If the bids were closely clustered, it might suggest a well-defined scope and realistic pricing. If there was a significant spread, the lowest bidder may have been highly competitive, or the higher bidders may have factored in higher risk premiums. Without access to the bid spread, it's difficult to definitively quantify the cost savings achieved solely through competition.

What is the historical spending trend for bridge construction by the Department of Transportation?

Historical spending on bridge construction by the Department of Transportation, particularly through the Federal Highway Administration (FHWA), has been substantial and consistent, reflecting the ongoing need to maintain and upgrade the nation's aging infrastructure. Federal funding for bridges is often allocated through programs like the Highway Trust Fund, with states receiving grants for specific projects. Spending fluctuates based on congressional appropriations, infrastructure initiatives (like the Bipartisan Infrastructure Law), and the condition of existing bridges. Analyzing multi-year spending data for bridge construction can reveal trends in project types, average contract values, and the geographic distribution of federal investment in this critical sector.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: DTFH6817B00024

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 605 KAPIOLANI BOULEVARD, HONOLULU, HI, 96813

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,057,171

Exercised Options: $20,057,171

Current Obligation: $20,057,171

Actual Outlays: $7,860,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline